I was checking this new extension button, I think is useful to give more light to extensions, but what I don't like it at all is that it only shows the extensions that are not present on the nav bar, not all your installed extensions. I think is confusing, it should be the list of all your extensions, and the user can pick which extension also appears more handy on the nav bar.
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That was in the original spec, but had to be changed because of technical constraints in the toolbar code.
Hopefully that can be addressed at some point in the near future :)